Philips warns unlicensed DVD+R makers in Taiwan

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17 Aug 04 14:32 by DoMiN8ToR in category Uncategorized To news archive

GristyMcFisty used our news submit to tell us that Philips is taking
action against companies that have not properly licensed the DVD+R format. In
order to manufacturer DVD+R(W) discs and drives a manufacturer needs to purchase
a license from the patent holders of the format, the same applies to DVD-R(W)
and DVD-RAM. However some smaller Taiwanese companies. The large Taiwanese DVD
disc manufacturers have bought a license, smaller ones hesitate.


src="http://www.cdfreaks.com/contentimages/newsimages/1126026421" align=right border=0>Taiwan’s
top producers of optical discs, including CMC Magnetics, Ritek and Prodisc
Technology, are licensed to use Philips DVD+R technology, while
second-tier and smaller makers are not licensed.
As
Philips’ DVD+R patents also cover CD-R technology, there is some ambiguity
about the DVD+R royalty claim. This is why disc makers are unwilling to
pay the royalty, unlicensed Taiwan users explained.


Although Philips has not yet taken legal
proceedings, Taiwan optical disc makers that have received a warning from
the company are watching to see how the situation
develops.

More information can be found in the original article on
target=_new>Digitimes.com. Altough Philips has not taken any legal actions,
the company did notify the customs and distributors and the company expects
those to block the Taiwanese discs until the license fees have been
paid.

Source: Digitimes.com

4 Comments

Phoenix '97
Posts: 136
Posted on: 18 Aug 04 03:02
Won't that just make the smaller manufacturers switch production to DVD-R? Is it all that difficult to switch?
Aktiv8
Posts: 23
Posted on: 18 Aug 04 09:31
No doubt they could switch to DVD-R if they wanted - but a licence must be aquired to use that format too... All they would probably be doing is buying themselves a little more time before another 'warning' comes their way
ichinisan
Posts: 16
Posted on: 18 Aug 04 10:57
Philips also claims to have the royalty rights for DVD-R format. Shipments from DVD-R makers are, therefore, also blocked at the ports of the European Union. For example Princo's DVD-R are being blocked all over Europe, the only way for Princo (and other unlicensed makers) is to get the goods in by 'unconventional' ways. Sorry to Aktiv18, end-users won't be easily able to switch to DVD-R if there is a shortage of DVD+R in Europe. Actually Philips is loosing lawsuits against Taiwanese media manufacturers (Princo and Gigastorage) is NOT only because they do not have the patents rights for the products, but they are according to the courts in Taiwan and USA asking for unreasonable high royalty fees. While you only need a few patents to manufacturer a CD-R or DVDR, Philips insists that you have to buy a whole package (100+) patents in order to produce a CD-R. This means that a factory is actually paying way too much. To give a reference, it is no secret that Philips' royalty fees accounts for more than 1/3 of the costprice of a DVDR discs and 50% of CD-R Due to recent pricedrops these percentages should be much higher.
assemblage
Posts: 15
Posted on: 20 Aug 04 18:44
"it is no secret that Philips' royalty fees accounts for more than 1/3 of the costprice of a DVDR discs and 50% of CD-R Due to recent pricedrops these percentages should be much higher. " I won't buy anonther Philips branded DVD+R's after the last ones I got. They were awful. If others have the same experience, Philips must need to make their money somehow.

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